Ask ET Mutual Funds: Am I investing in the right funds?

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Apr 04, 2017, 12.06 PM IST

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I am investing Rs 5,000 per month in the following mutual funds: HDFC Top 200 Fund (Regular, Growth)SBI Blue Chip Fund (Growth)ICICI Prudential Focused Bluechip Equity Fund I am 38 years old and looking forward to invest for another 10 years. Please suggest whether I am investing in the right funds?-- Atul Daptardar

Krishna Rath, Certified Financial Planner, Finvestor.in, responds:

Instead of investing in three largecaps, it is better to invest in one largecap and one mid-smallcap fund. Also, if possible, instead of investing a total of Rs 5,000, try to invest Rs 5,000 per month in each of these funds. In case that is not possible, please go for Rs 3,000 per month in mid-smallcap and Rs 2,000 per month in largecap.

For largecap, invest in SBI Blue Chip Fund (Growth) or HDFC Top 200 Fund (Regular, Growth). For midcap, you can select HDFC Mid-Cap Opportunities Fund (G). Also, try to select one AMC and go for direct mutual funds. In your case, I would advise you to go for HDFC funds and invest directly. You can get better returns if you go through the direct route, as the savings on commission rate would be significant over 10 years. Before switching from your existing funds, ensure that your latest SIP has completed one year to avoid short term capital gains tax.